BBC News: Reports that 10 year Spanish bonds have reached their highest since 1997, today the cost to the Spanish Government was 6.975%. Thus folks after Greece, Italy the bond market has Spain in its sight, with high unemployment and debt and a new government expected the 10 year Spanish bond is close as the article notes to the danger zone of 7%. The New Government is from the right, thus tougher austerity is expected, the question that has to be asked folks will that be enough, or will Spain have to go cap in hand to the EU. The German Government has made it clear even with the odd trial balloon that the European Central Bank will not print money to bailout the PIIGS, thus expect more up and downs on the markets and mass protests in Greece and Italy when the further austerity hits the people on the street. Next year is going to be tough folks, in the UK it can be expected that unemployment will reach three million and the economy could fall back in to recession or very limited growth. Welcome back to the late 70s early 80s folks.
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